China: PMI falls to five-month low in July
August 1, 2015
The Purchasing Managers’ Index (PMI) declined from 50.2% in June to 50.0% in July, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print undershot the 50.2% that market analysts had expected and represented a five-month low. As a result, the PMI sits exactly in the 50%-threshold that separates contraction from expansion in the manufacturing sector.
July’s reading reflected a decline in new orders, which dipped to a nearly three-year low, and weakening production output. Inventories and unemployment also deteriorated in July, whereas the supplier delivery times category inched up in the same month. The input prices—a reliable leading indicator for consumer prices—hit a five-month low in July, thereby remaining firmly entrenched below the 50%-threshold. New export orders declined further and hit a 25-month low, reflecting the softening external demand